Sonomax Hearing Healthcare Inc.

Sonomax Hearing Healthcare Inc.

August 16, 2005 17:44 ET

Sonomax Hearing Healthcare Announces Second Closing of Private Placement; August 26th Deadline for Subscription


Sonomax Hearing Healthcare Inc. (TSX VENTURE:SHH) previously announced a private placement of up to 10,000,000 units for gross proceeds of up to $3 million. (Press release - April 7, 2005). Each unit consists of one common share of Sonomax and one common share purchase warrant (a "Warrant"). Each Warrant entitles the holder to purchase one common share of Sonomax at a price of $0.60 per share for a period of twelve months. On April 7, 2005 the Company announced the closing of a first tranche of 6,666,667 units, for gross proceeds of $2 million. The Company today announces the closing of a second tranche of 2,283,333 units for gross proceeds of $684,999.90.

The TSX Venture Exchange has extended the date for completion of the balance of approximately $315,000 of the private placement to August 31, 2005. This notwithstanding, the Company has made the determination to accept subscriptions up to, but not after, August 26th, 2005.

Insiders of Sonomax subscribed for 16.25% and 4.38% of the aforesaid 6,666,667 units and 2,283,333 units respectively.

With respect to the second tranche of 2,283,333 units, Sonomax paid to Lorian Group a cash commission equal to 5% of the gross proceeds, other than proceeds from subscriptions by Sonomax insiders and from purchasers located outside Canada, issued to Lorian Group broker's warrants entitling it to acquire 171,333 common shares of Sonomax at a price of $0.30 per share until August 15, 2007, and also agreed to pay to Lorian Group a cash commission equal to 5% of the gross proceeds from the exercise of the Warrants which are part of the above mentioned Units.

The proceeds from the private placement will be added to Sonomax's working capital.

The common shares and Warrants issued by Sonomax under the private placement are subject to a four-month hold period from the date of issuance in accordance with applicable securities laws and the policies of the TSX Venture Exchange. The private placement has increased the number of outstanding common shares of Sonomax to 56,573,748.

About Sonomax Hearing Healthcare Inc

Sonomax has invented a unique earpiece that is the gatekeeper between sounds and eardrums. With its multi-purpose capabilities, it can shut the gate on harmful sounds like workplace noise with unparalleled efficiency, and can also welcome sounds like music and voices with perfect fidelity. Technological advances in the hearing protection, hearing aid and personal electronics fields, presently lack the last piece of the puzzle - an interface that will optimize their very exciting potentials. Sonomax's scientifically proven proprietary expansion technology is the last piece of the puzzle - an instant-fit, custom-made earpiece that delivers a perfect acoustic seal every time, along with a computer-generated proof of performance.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information